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THIS IS A SUPPLEMENT TO THE PROSPECTUS DATED AUGUST 16, 1999
SUBORDINATED NOTE INTEREST RATES
EFFECTIVE JANUARY 17, 2000
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SUBORDINATED NOTE INTEREST RATES FOR THE SPECIAL MILLENNIUM OFFER
These bonus interest rates are only applicable to the following Note types with
principal amounts of $5,000 or more that are
purchased between January 17, 2000 and February 18, 2000.
PORTFOLIO AMOUNT (1) $1,000 - $24,999 $25,000 - $49,999
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INTEREST ANNUAL INTEREST ANNUAL
NOTE RATE % YIELD % RATE % YIELD %
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<S> <C> <C> <C> <C>
365-Day Extendible (3) 11.00 11.00 11.25 11.25
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ONE YEAR FIXED-TERM (3) 11.00 11.00 11.25 11.25
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STANDARD INTEREST RATES
PORTFOLIO AMOUNT (1) $1,000 - $24,999 $25,000 - $49,999
INTEREST ANNUAL INTEREST ANNUAL
NOTE RATE % YIELD % RATE % YIELD %
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<S> <C> <C> <C> <C>
90-Day Extendible (2) 8.01 8.25 8.26 8.52
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180-DAY EXTENDIBLE (2) 8.76 8.95 9.01 9.21
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365-DAY EXTENDIBLE (3) 9.50 9.50 9.75 9.75
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ONE YEAR FIXED-TERM (3) 9.50 9.50 9.75 9.75
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TWO YEAR FIXED-TERM (4) 9.88 10.25 10.13 10.52
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THREE YEAR FIXED-TERM (4) 10.25 10.65 10.50 10.92
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FOUR YEAR FIXED-TERM (4) 10.57 11.00 10.82 11.27
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<CAPTION>
$50,000 - $99,999 OVER $100,000
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INTEREST ANNUAL INTEREST ANNUAL
RATE % YIELD % RATE % YIELD %
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<C> <C> <C> <C>
11.50 11.50 11.75 11.75
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11.50 11.50 11.75 11.75
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$50,000 - $99,999 OVER $100,000
INTEREST ANNUAL INTEREST ANNUAL
RATE % YIELD % RATE % YIELD %
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<C> <C> <C> <C>
8.51 8.79 8.76 9.05
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9.26 9.47 9.51 9.74
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10.00 10.00 10.25 10.25
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10.00 10.00 10.25 10.25
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10.38 10.79 10.63 11.06
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10.75 11.19 11.00 11.46
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11.07 11.54 11.32 11.81
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(1) The applicable portfolio amount is determined at the time a Note is
purchased by aggregating the principal amounts of all Notes currently owned by
the investor and the investor's immediate family members. Immediate family
members are considered to be parents, children, siblings, grandparents and
grandchildren. Members of sibling families are also considered immediate family
members if both siblings are investors.
(2) Earns simple interest. The Annual Yield calculation assumes that the term of
the Note is extended sequentially for an entire year, that the interest earned
during each term is included in the principal amount for the next term and that
the listed interest rate is the interest rate for each term.
(3) Earns simple interest, which results in the Interest Rate and the Annual
Yield being equal during the initial term.
(4) Interest compounds quarterly. The Annual Yield calculation assumes that
accrued interest is paid annually.
PLEASE NOTE:
On November 15, 1999, Arcadia Financial Ltd. announced that it had agreed to be
acquired by Associates First Capital Corporation. The acquisition is expected to
be completed in the first quarter of 2000.
Established in 1918, The Associates is a leading diversified finance company
providing consumer and commercial finance, leasing, insurance and related
services. Based in Dallas, the company has 35,000 employees and serves more than
24 million customers worldwide.
The Associates has over $91 billion in managed assets and a net worth of $8.5
billion. Its pre-tax earnings have grown at an average compound rate in excess
of 20% per year since 1975. For more information about The Associates, check out
their web site at www.theassociates.com.
IN THE MERGER AGREEMENT, ARCADIA AGREED TO STOP ISSUING NEW FIVE YEAR FIXED-TERM
NOTES AND TEN YEAR FIXED-TERM NOTES AFTER NOVEMBER 12, 1999. Once the merger is
completed, Associates may elect to have Arcadia redeem the outstanding
Subordinated Notes.
For a description of how the redemption process would work, please read
"Description of the Subordinated Notes - Redemption by Arcadia Financial" on
page 18 of the Prospectus.
